The Department of Health and Human Services has announced a department-wide initiative to reduce regulatory burdens in healthcare and respond more quickly to the concerns of healthcare providers, state and local governments, and individuals who are affected by HHS rules.

"Over-regulation undermines quality of care and healthcare delivery by using scarce resources unproductively," said HHS Secretary Tommy Thompson. "We can help improve patient care by bringing more common sense into the regulatory process."

Thompson announced that a cross-Departmental Task Force on Regulatory Reform is being created immediately to steer an ongoing review of HHS regulations and to oversee changes in regulations. The regulatory reform effort will also include expanded review of Medicare and Medicaid regulations as part of a reform of the Health Care Financing Administration.

"Healthcare providers have been telling HCFA for years that many of our regulations are overly burdensome. It's time for action." As a start, Thompson said HHS will review regulations governing the Medicare+Choice program, which provides for managed care services for Medicare beneficiaries. He also said HHS will review the extensive cost reports which Medicare hospitals are required to file with HCFA.